Tax Reform Ideas - Sales Tax Reform

STOP.... Are YOU at risk?
who is STEALING your money!

Class warfare is caused in increasing the state sales tax. Libertarians call property taxes unconstitutional and the masses who own home are feeling victimized by ever increasing property taxes. Untold suffering is fostered on those with limited fixed income retirement as well as the working poor.

The poorest households in spend more oftheir income on state and local taxes, while the very richest spend less of their income on state and local taxes. And that doesn’t count fees,

What we see is property tax savings for the wealthy paid for through a higher state sales tax. This is a most regressive of the major taxes states collect.

Poor people spend more of their income on taxable goods than wealthier people. Lawmakers could exempt groceries from taxation; that would take much of the regressivity out of the sales tax.

It would be class warfare to require the poor — who already are paying more than their fair share — to pay for a tax break for the better-off by way of higer sales taxes.

The only sane way is to cut expenses. The largess of government, if left unchecked will cripple the system much like it is doing in Europe.

The cause of the economic stagflation that has crippled Europe and Japan is the massive government pension programs that transfer the wealth from the productive working population to elderly nonworking population. This transfer of money from the highly productive to the nonproductive does not create real assets or responsible investments that are the fuel for economic growth. This huge transfer of money is a liability born by you, your kids and future generations.

Bleeding hearts may say that the teachers who educate our children deserve extra perks, the firemen, policemen, military who risk their lives deserve extra treatment. Lets look around at complimentary jobs and find what the private sectors pay.

Pastors, missionaries, nurses, private consolers work 35 plus years before they retire. Insurance experience rates show that roofers, fishermen and a host of other trades are more dangerous than that of the police and firefighters. Ironworkers have to face down fear every day. Electricians have to face high voltage decisions every day. Carpenters have high scaffolds, high ladders from which they have to dangerous reach out to do their work. Fishermen don't know if they have to face the perfect storm tomorrow. The coal miners don't know what danger awaits them, not to mention black lung disease. That's working life.

In the private sector, whatever one puts into their pension programs they get back. When they retire the health benefits stop. Yes there is COBRA laws that allow the worker to purchase and extend health care coverage for 18 months. The worker is required to pay the entire premium for coverage up to 102 percent of the cost to the plan. But after the time is up they have to purchase health coverage at open market prices.

It is our choices, far more than our abilities, that show what the future holds. Public employees work 20 - 25 years and receive lavish health care perks and pensions. The private sector has to work 35 + years with no health coverage unless they pay into that coverage. Compared to the private sector, with the system in place, taxpayers have to subsidize paying approximately 1/3 for productive years not worked by public employees, an excessive wage structures rife with gimmicks and top of the line health coverage. Something smells rotten. The overhead is too much to bear and will eventually tear down the economy. It has already curtailed to quality of life from what it could have been. "No person has ever been honored for what he received. Honor has been the reward for what he gave." - Calvin Coolidge, 30th U.S. president

If nothing is done to change the situation the future looks bleak - lower income, slower productivity growth, less income, less wealth, higher taxes. Human nature is more likely to criticize or nitpick instead of honor and compliment. When the public finally wises up to subsidizing the trough, the smear left on public school teachers, town workers, cops, firemen and the like will tarnish many a fine reputation.